Best Home Equity Line of Credit Rates in Berks County, PA

When seeking the best rates in Berks County, PA for a Home Equity Line of Credit (HELOC), look no further than Bellco Federal Credit Union. Apply online and get the cash you need to pay for unexpected expenses.

Bellco FCU is a member-owned, not-for-profit federal credit union. For 80 years, we have provided unique financial products and services to individuals and small businesses in Berks County, including HELOCs, traditional Home Equity Loans, fixed rate mortgages, and more.

What is a HELOC?

A HELOC is a revolving line of credit that is secured with the equity in your home. It has a draw period and a repayment period.

During the draw period (typically 5 or 10 years), you can withdraw funds from the credit line up to your credit limit. Borrow as much as you need, when you need it, and make a minimum payment on the amount borrowed.

If you partially or completely repay the line of credit during the draw period, you may make additional withdrawals. However, even if you do not use all of the available funds, you will not be able to make withdrawals once the draw period closes.

During the repayment period, you will be required to make monthly principal and interest payments until the entire loan has been repaid (typically up to 10 years).

To determine the amount of your HELOC, your lender will consider the estimated appraised value of your home, the amount of your current mortgage, and any other loans secured by your property. 

HELOC Features and Benefits 

Lower Interest Rates – A HELOC typically has a lower interest rate than other types of loans, making it an affordable option when you have large financial expenses. The rate is adjustable (not fixed), which means it may change over the term of the loan.  Also keep in mind that your credit score will have an impact on the rate. The higher your credit score, the lower interest rate you may be able to obtain.

Pay Interest Only on the Funds You Use – One of the major benefits of a HELOC is you only pay interest on the amount you borrow, not the entire principle.  For example, if you get a HELOC for $50,000, but use only $25,000, you would pay interest on the $25,000 you utilized, not on the entire $50,000 loan.

Improve Your Credit Score – Making timely payments on your HELOC can boost your credit score, signaling to financial institutions that you are a responsible borrower. The lender can foreclose on your home, however, if you can’t repay the loan when it comes due.

If you are facing large or unexpected expenses, consider a Home Equity Line of Credit from Bellco FCU, where we offer the best rates for the cash you need.